A Perfect TFSA Stock for a Choppy 2026

Alimentation Couche-Tard (TSX:ATD) looks like a prime low-beta buy after its post-earnings slide.

Key Points
  • In a choppy 2026, prioritize TFSA holdings with low beta, resilient cash flows, and steady long-term earnings growth instead of reacting to day-to-day swings.
  • Alimentation Couche-Tard (TSX:ATD) fits the defensive profile with a strong balance sheet and ~0.75 beta, and the post-earnings dip leaves shares around ~21.8x trailing P/E.

There’s no one perfect stock for your TFSA, but there are a few traits to look out for when you’re looking to tame a sudden rise in market volatility. For the most part, volatility has been weighing more heavily on the U.S. markets, but the TSX Index hasn’t been immune. Either way, this piece will have a closer look at a name that’s attractively valued, with a lower beta, a recession-resilient cash flow stream, and, perhaps most importantly, the ability to grow earnings at a decent pace over the longer term.

While seeking volatility shelters may help you stay calm when others around you begin to panic, it’s ultimately the long-term game that matters most, especially for young investors who have time on their side. While it has been a choppier 2026 so far, I have no idea whether it’s a sign of what’s to come for the final three quarters of the year. Just because the first quarter is a choppy ride doesn’t mean that’s how it’s going to be for the rest of the year.

people ride a downhill dip on a roller coaster

Source: Getty Images

Ready for volatility?

At around this time last year, investors faced a steep dip, which was worsened by Liberation Day tariffs. As it turned out, the whole dive turned out to be just another great V-shaped buying opportunity. While only time will tell what we’re in for after tough sledding in March, preparing for increased volatility is never a bad idea, especially since we’ve been on quite a run since last year’s infamous Liberation Day lows.

Of course, there’s always the risk that the next big slump won’t have the luxury of a V-shaped bounce. A bear market could be more punishing to the dip-buyers, so do have a game plan and ensure you’re emotionally ready for whatever the market serves up next.

Couche-Tard

So, what’s a tempting stock to pursue in this environment? I think shares of Alimentation Couche-Tard (TSX: ATD) might be able to power their way higher, even as the consumer environment takes a turn. Indeed, Couche-Tard stock looks ready to move on after a tough past two years. In essence, it sat out a pretty robust bull run.

As the tides turn, though, I wouldn’t bet against Couche-Tard, especially if market volatility opens the door for lower prices across the convenience store scene. With a strong balance sheet, Couche-Tard is arguably a standout play as the retail industry begins to move sideways or lower. The winning formula for M&A lies in the synergies.

The lower the admission price, the higher they stand to be. And if things really do get nastier for the convenience retail industry, I view it as a potential long-term positive for Couche-Tard. Either way, Couche-Tard’s a great staple that can withstand a volatility storm or two. With lukewarm third-quarter results being met with selling, I think there’s an opportunity to pick up a few shares at around 21.8 times trailing price-to-earnings (P/E).

While the earnings weren’t impressive, merchandise growth was a bright spot. As the firm stays on course with its multi-year strategic plan, I’d not look to overreact by selling. With a sound growth plan and a 0.75 beta, perhaps it’s time to buy post-earnings now that everyone has had a chance to hit the sell button.

Fool contributor Joey Frenette has positions in Alimentation Couche-Tard. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool has a disclosure policy.

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